LAOAG CITY -- The province of Ilocos Norte is looking to increase real property taxes considering the rising prices of basic goods and services.
Provincial Assessor Herminio Castillo said an ordinance adopting the proposed revised schedule of fair market values of land and the schedule of base unit construction cost for buildings and other structures in the province is now being reviewed at the Sangguniang Panlalawigan (SP) for second and final reading.
Castillo explained that from 1992 to 2014, real property tax in the province was maintained at 20 percent which was “undervalued” considering rapid increases of basic goods and services.
“This has long been overdue and we need to comply with the provisions of the Local Government Code of 1991,” he said in an interview on Monday after the proposed real property tax increase was presented at the Ilocos Norte Board.
Once approved, landowners shall expect an increase of more than 2,000 percent in real property tax payment.
For example, a landowner in an upland rice land property in a third-class municipality of Ilocos Norte shall pay a real property tax amounting to PHP6.70 per square meter from its previous PHP0.30 per square meter.
For outgoing Provincial Board Member Vicentito Lazo, the proposed fair market value is “shocking” and it needs a lot of explanation for taxpayers to understand.
“There is something wrong with this. There is no uniformity and it is not progressive at all,” Lazo said.
The proposed ordinance was deferred for the meantime to give more time for the Sanggunian Panlalawigan to study and introduce amendments later.
During the presentation of the ordinance at the SP session hall on Monday, Carmencita Tabije, acting Assistant Provincial Assessor, said the Bureau of Local Government Finance (BLGF) has already issued a certification for the province of Ilocos Norte, citing the proposed adjustment is “fair” and it underwent series of public consultations.
Under the law, the general revision of assessments and valuation of land usually happens every three years.
In Ilocos Norte, records from the Provincial Assessors Officer showed the last revision was implemented in 2014 with a total real property tax collection of PHP46 million. This contributed to around 32 percent of the total local income sources of the province.
Four years later or in 2018, the province collected PHP182 million in real property tax which comprised a majority, or 54 percent of local revenue collection of the province.
“Our collection is gradually increasing. Whatever we collect from taxpayers goes back to them in terms of various government services such as healthcare, livelihood assistance, education and infrastructure development, among others,” she added. (PNA)
